Sell or Rent Home? Need to understand ROI
- I have house in Clovis, CA. Purchase Price was 260000 (2014 build). Current market price 310000. Current Mortgage: 15 year term(12 year remaining). Interest Rate: 2.625%. Purchased in 2014. If I sell this year I don't need to pay Capital Gain tax (Was in that home till Jan-2018, after that tenant occupied)
- Current rent is 1595 per month (Current Mortgage payment - $1968 includes property tax ,insurance etc). Should I sell this house or keep it?
Will appreciate your response.
Most Popular Reply
@Ronak Kotecha if I understand what you’re describing correctly, so you’re saying you are losing almost $400 per month on this rental?
If that’s the case, then yes you should probably sell it and stop losing almost $4,800 a year.
You’ve already lost close to $10K in the last two years. And even if you refinanced into a 30 year mortgage, it still doesn’t seem that you would cash flow.
Unless you can raise rents and Refi into a 30 year term in order to have a healthy cash flow, then selling is probably your way to go.